Japan Electric Furnaces Carbon Steel Output to Remain 2011 Level for 2012

Japanese Non-Integrated Steel Producers’ Association’s chairman Katsutoshi Kurikawa said on monthly press conference on Monday Japanese carbon steel making electric furnaces’ output for 2012 would slightly increase or remain same level as in 2011 when Japanese construction investment would increase for 2012 from 2011. The president of Godo Steel emphasized Japanese carbon steel making electric furnaces should avoid overproduction to secure reproducible profit when ferrous scrap cost increase.

Mr. Kurikawa said Japanese building construction starts increased by 4% in 2011 from 2010 but the start increased by 15% for reinforced concrete structured building while the start increased by 1% for steel structured building. He said Japanese concrete reinforcing steel bar output was 8.088 million tonnes in 2011 reaching 8 million tonnes for the first time in 5 years.

Mr. Kurikawa warned proposed electricity charge hike by Tokyo Electric Power (TEPCO) represents 40% hike for carbon steel making electric furnaces when the steel makers operate only in mid-night and weekend. He said the electricity hike impacts on Japanese carbon steel and special steel making electric furnaces heavily when the makers consume 4.38 kilowatt per 1,000 yen of sales and the consumption is 8 times of manufacturers’ average. He said the industry tries to appeal the severe impact by the higher electric cost.